Michael Boskin and John Cogan: Tax Cuts Can Help California Grow Again - WSJ.com:
"The commission's majority report recommendations were made public yesterday. They include a sweeping overhaul of the personal income tax code that reduces tax brackets to two from six; eliminates all deductions and credits other than for charity, mortgage interest and property taxes; and cuts the top statutory income tax rate to 6.5% from 9.3%. Most taxpayers would receive a 25%-30% tax cut and all would pay less. The commission also recommends abolition of the state's corporate income tax and the elimination of most of the state sales tax that finances the state's general revenue fund (as opposed to special funds for transportation, etc.). Finally, to replace the lost revenue, the commission recommends a broad-based, low-rate state value-added tax (VAT), collected on business net receipts (revenues less purchases from other businesses, including immediate expensing of capital), that is capped at 4%."
Read full report: http://www.docstoc.com/docs/12340338/Commission-on-the-21st-Century-Economy-Issues-Recommendations-to-Modernize-Stabilize-and-Simplify-California’s-Outdated-Tax-System
http://www.cotce.ca.gov/
